Ads 468x60px

Thursday, 24 November 2011

Good Dividend Stocks

Any company or corporation earns a profit, that money can be put in two ways
1. It can be re-invested in the business called retained earnings
2. It can be distributed to share holders called dividends.
Most secure and stable companies offer dividends to their stock holders. High Growth company's rarely offer dividends. These companies reinvest all of their profits to sustain their growth.
Investing in dividend stocks and blue chip stocks are always profitable for long term investors.
Dividend: Dividends are taxable payment made by a corporation from its portion of corporate profits to its share holders.
For a joint stock company a dividend is allocated as a fixed amount per share. Public companies usually pay dividends on a fixed schedule. Some times companies pays special dividends.These are different from fixed dividends.
These dividends are paid in the form of cash,shares in the company or property
Cash dividends are a form of investment income and are usually taxable. 
Stock dividends are paid out in the form of additional stock shares of the issuing corporation. At that time the company increases the number of shares while lowering the price of each share without changing the market capitalization.
Property dividends are paid out in the form of assets. These type of dividends are relatively rare.
How to calculate Dividend?

Dividened yield(%)= (Annual dividend/current share price)*100.

Stocks which are having good history of giving dividends.

  • TCS                                                                        India Bulls
  • ITC                                                                         HCL Info
  • IOC                                                                        GE shipping
  • NTPC                                                                     Tata Elexi
  • Hero Honda                                                            Chennai petroleum
  • Reliance Industries                                                  Hinduja global
  • State Bank of India                                                  LKP Finance
  • Infosys Technology                                                  Nestle       
  • HUL                                                                        Glaxo Smith Pharma
  • Sail                                                                       Bajaj hld&invs
  • ICICI Bank                                                             HDFC Bank 
  • BHEL                                                                   Bosch
  • HDFC                                                                    Asian Paints
  • Gail                                                                       Gujarat Gas
  • Wipro                                                                    Mahindra& Mahindra
  • Tata motors                                                           Reliance Industries
  • Oil india                                                                 Thermax
  • L&T                                                                      Foseco India
  • Petronet lng                                                           Mundra port
  • Delta corp
Related Links:
Very Useful Article for Wall Street
Three hottest sectors for 2012